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MKT2CBE - Thu Nguyen Section A Type Questions: 1. How is niche marketing different than differentiated marketing? Niche marketing is when a firm specialises in serving one market segment with unique demand characteristics. For example: The Bobby Grace company specialise in one product: the putter. They only make putters and have a very small product offering of accessories beyond that. Their putters are marketed as highly advanced technologically because all of the company’s attention is dedicated to this one club, the putter. Differentiated marketing: firms that serve multiple markets segment each with a unique product offering. For example: The Toyota company has different products such as Lexus for the luxury segment and Scion of the younger drivers.

Undifferentiated Differentiated marketing

Niche

Product Product 1 Product 2 Product 3

1 segment Segment 1 Segment 2 Segment 3

Product 1

Segment 1

2. What is the difference between an internal influence and an external influence as described by the Consumer Value Framework (CVF)? Ch2 Value is a personal assessment of the net worth obtained from an activity (Value = what you get – what you give). Consumer Value Framework (CVF) represents consumer behaviour theory illustrates factors that shape consumption-related behaviours and ultimately determine the value associated with consumption. Internal influences are things that go on inside of the mind and heart of the consumer or that can be thought of as part of the consumer: such as the psychology and personality of the consumer. External influences include the social and cultural aspects of life as a consumer. They directly impact the value of activities, although the influence comes from sources outside of the consumer.

3. What is meant by the term “personality”? What does it mean that personality is unique to the individual? Ch6 Personality is the totality of thoughts, emotions, intentions, tendencies, and behaviours that a person exhibits consistently as he or she adapts to the environment. This definition highlights the cognitive (thought), affective (emotions), motivational (intentions), and behavioural (behaviours) aspects that are central to the study of personality. Personality is unique to an individual because it helps distinguish consumers based on the specific characteristic or traits that each exhibits. Individuals may share some characteristics and traits. The Five-factor model is used by researchers to analyse multiple traits in personality.

4. What are the various power bases of reference groups? Give examples of how these power bases may influence consumers in their consumption decisions. Ch8 A reference group is a group of individuals who have significant relevance for a consumer and who have an impact on the consumer’s evaluations, aspirations, and behaviour. Information obtained from referents impacts consumer expectations. This effects value perceptions and satisfaction. Reference groups can influence consumers through social power. There are five categories of social power are referent power, legitimate power, expert power, reward power and coercive power. The way is which reference groups influence consumers falls into three categories: Informational influence, Utilitarian influence and Value-expressive influence. A number of things affect how much influence reference on product selection. First, the situation in which the product is consumed-public or private; second, whether the product is consider a luxury or a necessity. This table shows how reference group impact product selection.

5. What do the terms acculturation and enculturation mean and how do they relate to consumer socialization? Ch9 Culture is a learned process. Consumers learn culture through one of the twosocialisation processes – enculturation and acculturation Socialization involves learning through observation and the active processing of information about lived, every day experience. This learning results in the reinforcement of core societal values (CSVs) that are enduring and not easily changed. Social interaction ----------- Modelling --------- reinforcement Acculturation is the process by which consumers come to learn a culture other than their natural, native culture that is, the culture to which one may adapt when exposed to a new set of values. Acculturation is a learning process.

Enculturation represents the way people learn their native culture. In other words, enculturation represents the way in which consumers learn and develop shared understanding of things with their families. 6. How do the various types of risks influence consumer decision-making approaches? Consumers make decision by moving through various problem-solving activities in search of the best information that will help them make the decision. The level of perceived risk refers to the negative consequences that consumers believe will result from a particular course of action. There are several types of risk: - Financial: the risk associated with the cost - Social risk: the risk associated with how others will view the purchase - Performance risk: the risk associated with the likelihood that the product performs as expected - Physical risk: the risk associated with the safety of the product - Time risk: the risk associated with the time required to search for the product and the time needed for the product to be maintained. 7. Identify and discuss the five factors that influence the amount of search performed by consumers in a typical decision making process. P243-252 What is the consumer decision - making process? 1). Involvement:the degree of personal relevance that a consumer finds in pursuing value from a given act. Purchase involvement is positively associated with search activities, especially for ongoing searches. Because involvement represents a level of arousal and interest in a product, search tends to increase when a consumer possesses a high level of purchase involvement. 2). Perceived risk: perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take. As perceived risk increases, search effort increases. The consumption act including, financial, social, performance, physical, and time risk. 3). Time availability: All other things being equal, more time to spend on search usually results in increased search activity. Because time is valued so highly by most consumers, search will decrease when time constraints are present. 4). Attitude toward shopping: Consumers who value shopping and who possess positive aptitudes toward shopping generally spend more time searching for product information

5). Personal factors: Search tends to increase as a consumer’s level of education and income increase. Search also tends to decrease as consumers become older.

8. What is meant by each of the following: universal set, awareness set, consideration set, inert set, and inept set? 248 Universal set is the total collection of all possible solutions to a consumer problem (for example, the total number of brands of deodorant available on the market) Awareness set includes, quite simply, the set of brands or alternatives of which a consumer is aware. The consideration set of customers in order to learn about the total number of brands, or alternatives, that are considered in consumer decision making. The inept set: alternatives in the awareness set that are deemed to be unacceptable for further consideration. The inert set: alternatives in the awareness set about which consumers are indifferent or do not hold strong feelings 9. Discuss the concept of value in the context of the consumption process. Your discussion of the concept of value needs to include the notion of utilitarian value and hedonic value. At the heart of the Consumer Value Framework (CVF) is value, which is a personal assessment of the net worth a consumer obtained from an activity. Value can be modeled using the value equation which relates, “ What you get” from dealing with the company or buying a product compare to “ what you give”. “What you get” includes benefits such as quality, convenience and prestige whereas, “what you give” includes sacrifices such as money, time and efforts. Value = what you get – what you give Value can be understood better by breaking it down into two types: utilitarian and hedonic. Utilitarian is value derived from the product that help the consumer with some task (the utilitarian value from buying a car is that it provides the consumer with mobility). Hedonic value is the immediate gratification that comes from experiencing some activities (the hedonic value from buying a luxury car is the prestige and feeling of achievement). 10. How are models such as the elaboration likelihood model (ELM) and the attitude-toward-the-object (ATO) model providing their own unique contributions for marketers in understanding consumerattitudes? ATO: the Attitude-Toward-the-Object model proposes that three key elements be assessed to understand and predict consumer behaviour.

ATO formula: Where Ao is attitude toward the object in question Bi is strength of belief that the object possesses I, ei is evaluation of the attractiveness or goodness of attribute i N is number of attributes and beliefs. -

Consumer beliefs about salient attributes Strength of the consumer belief Evaluation of the attribute

The Elaboration Likelihood Model ELM shows how attitudes are changed based on differing level of consumer involvement. Depending on the level of involvement and the consumer’s ability and motivation to processes massage, the persuasion processes then follows one of two routes central route and peripheral route.

11. What is meant by the terms “symbolic interactionism” and “semiotics”? How do these concepts apply in the daily life of a consumer? P 116 Symbolic interactionism is an approach that says that consumers live in a symbolic environment and interpret the many symbols around them, and that members of a society agree on the meanings of symbols. Semiotics refers to the study of symbols and their meanings. Symbol can become part of the self-concept

Section B Type Questions: Note: Case study is provides approximately 1 to 1.5 pages followed by 4 questions. Questions vary in marks and therefore candidates are advised to effectively manage their time to ensure that they spend their time addressing each question based on the marks allocated for each question. The standard (i.e. the degree of difficulty of each question in this section is similar to the case study exercises provided in tutorial sessions.

PART B Case Study

CHAPTER 2: Value and Consumer Behaviour Value Framework 1. Internal Influence and External influence

Internal influence a) Consumer Psychology: involves both cognitive and affective process. The term cognition refers to the thinking or mental processes that go on as we process and store things that can become knowledge. And affect refers to the feeling that are experienced during consumption activities or associated with specific objects. b) Personality of consumer: individual differences characteristic traits of individuals, including personality ad lifestyle. External influence a) Social environment: elements that specifically deal with the way other people influence consumer decision making and value b) Situational influence: things unique to a time or place that can affect consumer decision-making and the value received from consumption. 2. Value a) Utilitarian Value: value derived from a product that helps the consumer with some task b) Hedonic Value: value derived from the immediate gratification that comes from some activity 3. Total value concept Total value concept: business practice wherein companies operate with the understand that products provide value in multiple ways.

CHAPTER 3: CONSUMER LEARNING STARTS HERE: PERCEPTION 1. Learning- A change in behaviour resulting from the interaction between a person and a stimulus 2. Perception- A consumer’s awareness and interpretation of reality.

CHAPTER 4: COMPREHENSION MEMORY AN COGNITIVE LEARNING CHAPTER 6: PERSONALITY, LIFESTYLES AND THE SELF-CONCEPT 1. Personality The total of thoughts, emotions, intentions, and behaviour that a person exhibits consistently as he or she adapts to his or he environment 2. Personality quality - Unique to an individual can be conceptualise as combination of specific traits or characteristics - Traits are relatively stable and interact with situations to influence behaviour and specific behaviours can vary across time. 3. The five factor model 4. The ABC approach (Affect, Behaviour and Cognitions) a) Affect- Feelings about and object b) Behaviour- Beliefs the consumer has about the object c) Cognitions-Overt behaviour that consumers exhibit as well as their intentions to behave 5. What is the culture - Consumer culture- societal beliefs that define what is socially gratifying - Culture is the values, ethics, rituals, traditions, material objects and value by the members of a society. 6. Types of Social power Referent power where consumers often imitate the behaviour and attitude of group as means of identifying with the group 7. Types of decision – making approach Consumer decision-making process

The three major decision marking research perspectives

7. The factors influencing amount of search ▮ Involvement ▮ Perceived risk ▮ Value of search effort ▮ Time availability ▮ Attitude toward shopping ▮ Personal factors ▮ Situational influencers

CHAPTER 7 Attitudes and Attitude Change 1. Attitude Relatively enduring overall evaluations of objects, products services, issues, or people. 2. Components of Attitude ABC approach (affect, behaviour, cognitions) Affect: Feelings about an object Behaviour: Beliefs the consumer has about the object Cognitions: Overt behaviour that consumers exhibit as well as their intentions to behave CHAPTER 8: Group and Interpersonal Influence 1. Reference group: is the group of individual who has significant relevance for a consumer and who has an impact on the consumer’s evaluation, aspiration and behaviour. 2. Group influence: Refers to the ways in which group members influence that attitudes, opinions, and behaviours of other within the group. 3. Word-of-mouth: information about products, services and experiences that is transmitted from consumer to consumer 4. Positive and negative world of mouth - Satisfied consumers are more likely to spread positive world of mouth - Negative word of mouth is very influential 5. Value and world of mouth - Word of mouth is affected largely by the perceived value that consumers receive from products and services - The more value that consumers receive, the more likely they are to tell others about their experiences. CHAPTER 9: CONSUMER CULTURE 1. Consumer culture – social beliefs that define what is socially gratifying 2. How to learn culture - Socialisation - Acculturation - Enculturation CHAPTER 12 AND 13: DECISION MAKING: NEED RECONITION AND SEARCH 1. Consumer decision marking processes: Need recognition  Search for informationEvaluation of Alternative  ChoicePostchoice Evaluation

Case study Case 2-1 1. What types of programs or tactics would you suggest the owner institute to break the fear of Baby Boomers and change their attitude toward rock climbing 2. What do you think motivates one to rock climb or try this sport? Is the value provided utilitarian or hedonic? If so what would be your motivation? Some like the physical challenge and exercise, and for some it raises their self-esteem in step for of Maslow’s Hierarchy Utilitarian is based on a product or service that helps the consumer solve a problem and or accomplish a task Hedonic value is the immediate satisfaction that originates from experiencing some activity In rock climbing fears are the biggest of problems- fear of heights or injury from falling Once the consumer face their fears and makes it to the top of the rock wall they may have that exciting, gratifying and fulfilling experience that comes from achieving their goal. There fore this could encompass both utilitarian and hedonic values 3. Explain how the intrinsic motivation state of flow might occur in rock climbing Flow occurs when a challenge is met with higher-level skills through a strong emotional state of high involvement, in which the person is totally absorbed and focused on the activity

A climber might find himself or herself in this state of flow on the rock wall especially when they are finally getting the hang of it focusing on their next move and how close they are to reaching their goal. It’s as if they are watching a movie and it is the climax, time passes quickly and the person is thoroughly dialled in to their own state of oneness with the wall 4. Using the multiple trait approach to consumer behaviour explain which specific consumer traits would explain one’s motivation to rock climb? For example,, The five factor Model of personality traits is one framework that can be used Personality traits that would most likely be found in rock climber include openness to experience and competitiveness Competitive- not only against other sport climber but a competition against oneself Extroversion Stability- climber tends to take a safe and steady route within their ability rather than climbing in a hazardous fashion. 5. Using the ABC approach to attitudes, explain why a Baby Boomer might feel that rock climbing is a young person’s sport. Then create a program for Rock Sport that attempts to change this negative attitude and invites baby boomers to try indoor rock climbing Attitudes are formed by combining three components: cognitivion or beliefs affect, and behaviour Many baby boomers are fearful of rock climbing-they believe they might fall and get hurt Lead to a negative affect or indifference towards the sport - Not to even attempt to try indoor rock climbing - To overcome these objections and attempt to change the negative attitudes of Boomers, Rock sport might create several new programs.

Case study 3-2 1. What factors will likely have the greatest impact on student attendance at a basketball game for university. - Students may state that winning and losing are the most important participationattrendance - Its is not only about winning or losing - Its is about the participation and involvement people receive that makes them feel included and that their attendance is important - Factors could include: Homework, work responsibilities and other activities at school

2. Describe culture. How would your university go about creating a unique culture to capture student attendance for your university? - Culture is the values, ethics, rituals, traditions, material objects and support produced or valued by the members of a society - Basketball culture includes the: halftime show, games during the breaks, cheering sections, specific food to the local area and team apparel that is specific to area. 3. What are the benefits and dangers that universities face by including social media in their marketing campaigns? - Benefits include the capturing of other demographics, psychographics and lifestyle outside of individuals that won’t normally attend sporting events. - Social media benefits also include: ease of communication spread, low cost communication for university and reaches the students in a timely matter via mobile devices - The benefits can quickly become dangers as everyone has access to social media and information is easily change or lost - Additionally, administration must keep up with the newest social media so that they are communicating through modern avenue 4. What types of social media campaigns could a sports marking director implement to gain student awareness?. Explain your answer - Mobile apps and mobile ads are a common way for companies to stay up with sutdents quickly. - Friending and liking sporting events and email and text message on events and pinterest and twitter - Geographic differences sometimes play a major factor so university should take this into consideration....